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Quota Conversion Regulations (Schedule 11)

made under Sections 9 and 14 of the
Dairy Industry Act
S.N.S. 2000, c. 24
N.S. Reg. 121/94 (July 18, 1994)

[Note: the Nova Scotia Dairy Commission does not exist under the Dairy Industry Act; the Dairy Farmers of Nova Scotia and the Natural Products Marketing Council regulate the industry under the new Act.]

Short title
1 These regulations may be cited as the "Quota Conversion Regulations".

2 In these regulations

(a) "fluid milk quota" means a quota in litres of milk per day allotted to a producer;

(b) "market sharing quota" or MSQ means production volume allotted to the Commission to represent the Provincial share of the market for industrial milk in Canada, expressed in kilograms of butterfat per year;

(c) "payout percentage" means the quotient, expressed as a percentage resulting from dividing total fluid milk sales in the Province, per pay period, by the sum of the lesser of the fluid milk quotas or the average daily shipments for all producers;

(d) "quota period" means that portion of the dairy year, containing four pay periods as determined by the Commission;

(e) "total production quota" means a quota allotted by the Commission in accordance with these regulations (Schedule #10*) to represent an individual producer's share of the market for milk, expressed in kilograms of butterfat per year, hereinafter referred to as TPQ.  *[Note: Schedule 10 replaced by N.S. Reg. 67/2001, Total Production Quota Regulations.]

Quota conversion
3 (1) All fluid milk quota and market sharing quota held by all milk producers as of July 30, 1994, will be converted to TPQ.

(2) The basis for the conversion of fluid milk quotas and MSQ to TPQ will be to maintain the same gross income, net of levies, bulk haulage, and promotion fees, under TPQ as might be expected under the previous quotas.

(3) In calculating the conversion, the following procedure will be followed:

(a) a 1994/95 dairy year income projection will be done for each producer, assuming both fluid milk quotas and MSQ were filled, and taking into account the following elements:

(i) payment at fluid volume,

(ii) payment at non-fluid volume,

(iii) payment for butterfat, protein, and other solids,

(iv) federal subsidy,

(v) deductions for haulage, levies, and promotion;

(b) the average price per hectolitre under TPQ will be calculated for each producer, assuming that producer's average component tests are equal to 1993-94 tests;

(c) the average price, as per [clause] 3(b) above, will be divided into the income calculated per [clause] 3(a) above, to derive a TPQ volume, in hectolitres of milk;

(d) the TPQ volume in hectolitres will be multiplied by that producer's 1993-94 butterfat test, in kg/hl resulting in each producer's TPQ in kilograms of butterfat per year.

(4) The annual TPQ allotment as calculated in [clause] 3(d) will be divided by 365 to arrive at daily TPQ, expressed in kg of butterfat per day, rounded to one decimal place.